© IJARW | ISSN (O) - 2582-1008
April 2021 | Vol. 2 Issue. 10
www.ijarw.com
IJARW1465 International Journal of All Research Writings 46
DISCLOSURE OF SOCIAL RESPONSIBILITY OF ISLAMIC
BANKING (COMPARISON BETWEEN STATE AND PRIVATE
ISLAMIC BANKS IN INDONESIA)
Mediaty
1
, Kartini
2
, Abdul Hamid Habbe
3
, Mustakim Muchlis
4
1,2.3,
Universitas Hasanuddin, Jl. Perintis Kemerdekaan, Kota Makassar, Indonesia
4
UIN Alauddin Makassar, Jl. Sultan Alauddin, Kabupaten Gowa, Indonesia
ABSTRACT
This study aims to compare the disclosure of social responsibility reports on Islamic State Banks
(BUMN) and Islamic Private Banks. This research uses content analysis to identify the revelations about
the social responsibility of Islamic banks. The analysis was conducted based on seven categories,
adapted from different indexes of social responsibility disclosure. The results showed that the
disclosure of Islamic state banks' social responsibility revealed more social responsibility than private
Islamic banks. The disclosure of social responsibility by all banks has increased from 2015 to 2019 and
is mainly disclosed stably. This shows that Islamic banks are constantly growing and are increasingly
aware of fulfilling a social role for the environment and society.
Keyword: Islamic Bank, Corporate Social Responsibility, State Islamic Bank, Private Islamic Bank
1. INTRODUCTION
Corporate social responsibility disclosure,
commonly referred to as CSR is the provision of
non-financial information related to
organizational interactions with the social
environment [1]. Corporate Social Responsibility
Disclosure plays an essential role in business, as
corporate disclosure is seen as transparent and
can increase the business's image and positive
feedback.
In Indonesia, the practice of corporate social
responsibility disclosure was initially dominated
by mining companies that had gone public [2].
However, many companies in various fields then
carry out social responsibility activities and
disclose them in their annual reports in its
development. Some companies disclose due to
mandatory regulations, but some are voluntary. As
a financial institution in line with Islamic
principles, Islamic Bank is a company / financial
institution that is also involved and constantly
discloses their social responsibility activities.
Disclosure of social responsibility activities in
Islamic banks is a natural thing because Islamic
banks are oriented not only on the business side
but also on social goals.
Islamic banks in Indonesia play an essential role
in promoting economic growth. The third-party
funds raised are then funnelled in the form of
trade finance and social spending such as interest-
free loans (qard), social responsibility activities,
etc. The growth of Islamic banks in Indonesia is
quite acceptable to the Indonesian Muslim
community. However, compared to the total
population of Muslims in Indonesia, Islamic banks
are expected to be accepted again; their existence
exceeds current acceptance and growth. When
Islamic banks can grow and develop properly, it is
hoped that Islamic banks' social activities can
reach many parties as well.
Currently, there are 14 Islamic banks in Indonesia
(see Table I). In early 2021, public Islamic banks
such as BNI Syariah, Mandiri Syariah and BRI
Syariah merged. It is hoped that when the merger
is completed, the merged bank will make a more
significant contribution due to the considerable
increase in assets and resources. It is also hoped
that through the merger, Islamic banks' social
responsibility activities will increase and can
provide benefits to many parties.
Table I Islamic Bank In Indonesia
NO BANK OWNERSHIP
1 BNI Syariah PT. BNI TBK, (State
Islamic banks)